The Great Britain pound ended the week as the weakest currency on the Forex market as the Brexit and associated uncertainties were in the center of the traders’ attention. The US dollar, on the other hand, ended the week strongest due to risk aversion.
The sterling crashed at the beginning of the week as the crucial parliament vote on the Brexit was delayed to at least January. The currency rebounded later as Prime Minister Theresa May survived the confidence vote of her Conservative party. Yet the currency erased those gains as the Prime Minister was unable to convince the European Union to renegotiate the Brexit deal.
The greenback profited from its role as a safe haven currency amid mounting concerns about global growth. In particular, data from China and the eurozone made investors worried and drove them to safety of the dollar.
GBP/USD dropped from 1.2704 to 1.2584, while its weekly low was at 1.2476. EUR/GBP opened at 0.8966, rallied to 0.9087, but retreated to 0.8978 by the weekend. GBP/JPY closed at 142.62 after opening at 143.07 and falling to the weekly low of 141.17.
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Pound Ends Week as Weakest Currency due to Brexit Worries
